The Rounds, an inventory management platform that delivers recurring grocery and household essentials in reusable packaging, has successfully raised a sum worth $24 million in Series B financing. Led by Moderne Ventures, the round saw further participation coming from the likes of FJ Labs, as well as from several of the company’s existing investors. Taking its total funding till date to $66 million, the development will allow The Rounds to scale its AI-powered service, strategically focusing on profitable growth across existing markets, expanding its team in the context of machine learning, data science, and executive leadership, and entering new markets. More on the same would reveal how this new cash inflow delivers a rather interesting follow-up to the company’s recent progress. You see, since its Series A, The Rounds has went to post 6X revenue growth, all while opening a state-of-the-art facility in Washington D.C., launching cold chain operations, and extending its closed-loop supply chain with local vendors. Not just that, it also builds upon the company’s launch of new AI-enabled features that give its members greater flexibility to choose their own “Refill Day” and add products one time or have them managed on a recurring basis using its “Psychic Home Manager” feature. Furthermore, The Rounds has expanded its product selection with over a hundred new SKUs—including fresh produce, local goods, and household staples. Currently, it provides more transparency around its sustainability benefits, with detailed information on product sourcing and a redesigned sustainability page. These products, on their part, are sourced locally, directly from producers, and in bulk. Once through the door, though, they are refilled in reusable packaging and delivered on a weekly schedule to members via its proprietary two-way last-mile logistics network.
Beyond the objectives that we referred to, The Rounds’ plan moving forward includes strategically partnering with multifamily property managers, something which is also evident in its recent collaboration with Moderne Ventures.
“The Rounds is addressing a huge pain point for city dwellers by enabling them to restock household essentials and get trusted local brands delivered with unparalleled convenience and less waste,” said Liza Benson, Partner at Moderne Ventures. “Our strategy at Moderne is rooted in connecting our portfolio companies with top real estate companies to create outsized returns. We are excited to work with The Rounds and multifamily partners to bring this valuable amenity to many more residents.”
Alongside the funding, The Rounds has also expanded its Board of Directors to include Gad Allon, a professor of Operations, Information, and Decisions at Wharton School of Business, who also serves as the Director of the University of Pennsylvania’s Management & Technology program.
Founded in 2019, The Rounds’ rise up the ranks stems from being an AI-driven shopping platform designed to intelligently manage home essentials and reduce packaging waste. You see, for no more than $10 a month, members can automate the delivery and replenishment of thousands of grocery SKUs in categories including household, personal care, pantry, produce, dairy, and dry goods, along with favorites from local brands and businesses. On top of that, leveraging its proprietary two-way logistics network, the company delivers all products in reusable packaging and empty containers that are picked up, sanitized, and refilled by The Rounds on a weekly basis. Apart from that, we must also mention how the company’s personalized set-it-and-forget-it platform allows for predictive recurring deliveries and smarter product recommendations over time. The Rounds is currently running operations in Philadelphia, Washington D.C., and Atlanta.
“Sustainability has been at our core since day one. According to the EPA, more than 82 million tons of packaging waste is discarded every year and less than 10% is recycled. Waste is just bad design. The Rounds creates a better experience for our members that wastes less than the alternatives. To date, we’ve saved over 1 million pounds of packaging waste, proving sustainability does not have to come at the expense of convenience,” said Alex Torrey, Co-Founder and CEO of The Rounds.
